BASEL, Switzerland, May 21, 2007 - Results from phase III
clinical trials and further human pharmacology studies were
presented at the 16th Congress of the European Academy of
Dermatology and Venereology (EADV). These data highlighted the
efficacy and safety profile of alitretinoin as a potential once
daily oral treatment for patients with severe refractory chronic
hand eczema.

Currently, no approved treatment exists for severe Chronic Hand
Eczema (CHE) refractory or unresponsive to topical therapy. This
debilitating disease can cause significant pain and functional
impairment of the hands as well as considerable psychological,
social and occupational impact on patients' lives. The data
presented at this meeting will form part of the regulatory
submissions later this year and show the potential for alitretinoin
to become the first product available to treat an estimated one
million patients in North America and Europe.

Eight posters on alitretinoin presented in the main conference
and four oral presentations in a company sponsored satellite
symposium highlighted alitretinoin as a potential treatment for
severe refractory CHE.

Positive efficacy and safety data on alitretinoin were reported
in posters from the pivotal BACH trial (poster number 275), the
re-treatment study (280) and an open-label safety study (281). Five
further posters covered aspects of the pharmacology of alitretinoin
(286, 287, 288, 289 and 290).

Previously reported results for the phase III BACH study (275)
confirm the efficacy and tolerability of oral alitretinoin for the
treatment of CHE in patients refractory to topical corticosteroids.
Once daily alitretinoin resulted in response of 48% of the patients
who were treated with 30mg per day for up to six months. Response
rate and time to response were dose dependent with a faster
response seen with the higher dose. Alitretinoin was generally well
tolerated in these clinical studies with an adverse event profile
typical of the retinoid drug class.

Patients with CHE often relapse, however, approximately 70% of
patients treated with alitretinoin in the BACH trial remained
relapse free, as defined in the protocol, during a six month
post-treatment observation period without any form of maintenance
treatment.

Basilea's re-treatment study (280) demonstrated that those
patients with disease recurrence remained responsive to another
course of alitretinoin treatment with a response rate of 80% in the
30mg group. The primary and secondary efficacy endpoints were
consistent with previously reported primary treatment studies and
repeated treatment courses of alitretinoin were generally well
tolerated.

An open-label study (281) provided further safety data
confirming that in patients with severe refractory CHE, exposure to
alitretinoin 30mg beyond six months is well tolerated.

About Chronic Hand Eczema (CHE) Hand eczema is a common skin
disease and is often chronic and relapsing. It is estimated to
affect up to 10% of the general population. The more severe,
chronic form of the condition is thought to affect up to 7% of
these patients, many of whom do not respond, or no longer respond
to topical corticosteroids. Basilea estimates there are at least
one million patients in Europe and North America with severe
refractory CHE for which currently no approved, effective
pharmaceutical treatment is available.

About Alitretinoin Alitretinoin is an investigational drug being
developed in Phase III clinical trials by Basilea as a novel
treatment for severe refractory Chronic Hand Eczema (CHE), a
complex disease for which no effective treatment options are
currently available. Alitretinoin has been shown to be effective in
clinical studies in patients with severe refractory CHE.
Alitretinoin is a teratogen and therefore pregnancy prevention
measures must be in place for all women of child-bearing potential
who receive alitretinoin. Within days after discontinuation of
therapy, alitretinoin levels return to endogenous levels. In
clinical studies the post-treatment contraceptive period was four
weeks.

About Basilea Basilea Pharmaceutica Ltd. is an independent
biopharmaceutical company headquartered in Basel, Switzerland, and
listed on the SWX Swiss Exchange (SWX:BSLN). Basilea's fully
integrated research and development operations are currently
focused on new antibacterial and antifungal agents to fight drug
resistance and on the development of dermatology drugs. Basilea's
products are targeted to satisfy high medical and patient needs in
the hospital and specialty care setting. The company owns a
diversified portfolio including three investigational phase III
drugs of which two have shown positive pivotal phase III results.
The company is integrating commercialization into its organization,
in a first step through co-promoting ceftobiprole with its partner
Cilag GmbH International, a Johnson & Johnson company, in North
America and major European countries.

Disclaimer This communication expressly or implicitly contains
certain forward-looking statements concerning Basilea Pharmaceutica
Ltd. and its business. Such statements involve certain known and
unknown risks, uncertainties and other factors, which could cause
the actual results, financial condition, performance or
achievements of Basilea Pharmaceutica Ltd. to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Basilea
Pharmaceutica Ltd. is providing this communication as of this date
and does not undertake to update any forward-looking statements
contained herein as a result of new information, future events or
otherwise.